California is bigger than many countries. The population exceeds 36 million people. The budget has a shortfall of over $15 billon. The total budget exceeds $100 billion. The reason that no budget has been passed, and there is an annual ordeal in balancing the budget, is that the law requires a two thirds majority for passage. Neither political party has that majority. Both the Democrats and Republicans have fought for their way to balance the budget. Neither has the power to bring a permanent resolution.
The Democrats want to raise taxes to cover the budget and the Republicans want to reduce spending to match current revenues. This argument will probably go on long after Arnold Schwarzenegger has left office. The two thirds law was probably passed to protect the public from excessive spending. The consequence has been just that. The California legislature has a history of poor spending habits.
Coast Contact 